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Discover Study Finds Millennials Are Saving More Than Other Generations

Nearly Half of Consumers Who Save are Using More than One Savings
Resource

RIVERWOODS, Ill.--(BUSINESS WIRE)--
According to a new survey from Discover, millennials are outperforming
older generations when it comes to saving for their future. In a
national study of 2,205 people, Discover finds that 81 percent of
millennials are currently saving in some capacity, compared to 74
percent of Generation Xers and 77 percent of baby boomers.

Interestingly, 35 percent of millennials say they saved more in 2017
than the prior year. This compares to 25 percent of Generation Xers and
22 percent of baby boomers who saved more in 2017 compared to 2016.

Forty percent of millennials who saved more in 2017 compared to the year
prior attribute the increase to a better understanding of how to set up
a budget, followed by 26 percent saying that they cut a recurring luxury
expense.

For comparison:

32 percent of Generation Xers who saved more in 2017 than 2016
attribute the increase to a paycheck bump, followed by 26 percent that
either cut a recurring luxury expense or have a better understanding
of how to set up a budget

20 percent of baby boomers attribute their increase in savings to a
paycheck bump, and the same amount say they have a better
understanding of how to set up a budget and have cut a recurring
luxury expense

Millennials are also more likely than Generation Xers or baby boomers to
put money aside when they are saving for a specific goal, such as a
vacation or an auto repair. The study shows that 67 percent of
millennial respondents are saving for something specific, while only 56
percent of Generation Xers and 49 percent of baby boomers noted the same.

“While our survey shows clear differences in the savings habits across
generations, it is important to remember that consumers should save at
all points in their lives,” said Heather Roche, vice president of
Deposits at Discover. “People should start saving early in life and stay
consistent in that practice. There are tools such as Discover’s financial
goal calculator that can help give consumers a better understanding
of how best to save in order to achieve their financial goals.”

How You Save May Be Contingent on Your Age

Generational differences exist even when it comes to developing
cost-saving strategies. For example, boomers are more likely than
Generation Xers or millennials to cook at home and incorporate household
efficiencies, millennials are more likely than other age groups to take
public transportation and Generation Xers are more likely than
millennials or baby boomers to use coupons.

More Than Three-Fourths of Americans Are Saving, with Nearly Half of
Savers Using Multiple Resources

The survey also finds that 77 percent of Americans are currently saving
in some capacity, with nearly half (48 percent) of those who save doing
so through multiple savings resources. For example, 41 percent of those
who use a savings account also use a checking account to save.
Similarly, 34 percent of those who use a savings account also use a
retirement account.

While more than three-fourths of Americans currently save, nearly
one-fourth of consumers do not. When asked why they aren’t saving, 35
percent of respondents say a lack of income is the main reason.
Surprisingly, 17 percent say they don’t have a reason for why they
aren’t saving. An additional 17 percent say they aren’t saving due to
bills that need to be paid, while 10 percent cite too many debts.

Among those who are not saving, 35 percent do not know which product or
type of account they would use to save if they were to start.

“We understand that saving can sometimes feel daunting, which is
why we’ve taken steps to provide consumers with helpful tips that are
relevant for people in all financial situations,” said Roche. “Doing
research into the types of accounts you’re looking for is a great place
to start. Discover’s product
comparison tool and financial
education blog will help you determine the best fit, whether you’re
interested in an online savings account, CD or IRA.”

All figures, unless otherwise stated, are from YouGov Plc. Total sample
size was 2,205 adults. Fieldwork was undertaken between September 6-7,
2017. The survey was carried out online. The figures have been weighted
and are representative of all US adults (aged 18+).

Millennials are individuals between the ages of 18 and 34 at the time
they completed the survey.Generation Xers are individuals between
the ages of 35 and 54 at the time they completed the survey.Baby
boomers are individuals aged 55 or older at the time they completed the
survey.

About Discover

Discover Financial Services (NYSE: DFS) is a direct banking and payment
services company with one of the most recognized brands in U.S.
financial services. Since its inception in 1986, the company has become
one of the largest card issuers in the United States. The company issues
the Discover card, America's cash rewards pioneer, and offers private
student loans, personal loans, home equity loans, checking and savings
accounts and certificates of deposit through its direct banking
business. It operates the Discover Network, with millions of merchant
and cash access locations; PULSE, one of the nation's leading ATM/debit
networks; and Diners Club International, a global payments network with
acceptance in more than 185 countries and territories. For more
information, visit www.discover.com/company.